Portfolio of Land for Conversion in Kwazulu-Natal

PORTFOLIO OF LAND FOR CONVERSION

CONTENTS

INTRODUCTION 2

Key Concepts 3

Demand Drivers 5

Possible 5-year sales outcomes 11

laND CONVERSION AND DEVELOPMENT MODEL 12

pORTFOLIO OF LAND FOR CONVERSION 14 IN KWAZULU-NATAL

LAND CONVERSION PORTFOLIO Areas where commercial negotiations have commenced 18 or are likely to commence over the next 24 months

Land from which sales are expected to come within 5 years 41 Land where sales are anticipated to commence beyond 5 years 50

pORTFOLIO OVERVIEW MAP 52

01 PORTFOLIO OF LAND FOR CONVERSION

Introduction

Tongaat Hulett has an unequalled portfolio of some authorities and the Ingonyama Trust has led to the establishment 8 026 developable hectares of land in prime locations in of 79 primary cooperatives, spanning 21 traditional authorities, KwaZulu-Natal. A growing momentum is being achieved in with a principal membership of over 6 000 and the creation various activities that lead to value creation in and unlock of some 7 175 direct new agricultural jobs. Collaboration with from this portfolio, including strengthening demand drivers, many of the same agencies takes place in the land conversion unlocking infrastructure at key points, securing release from process around land tenure and management, land use agriculture and other development approvals, while executing optimization, infrastructure (including renewable energy), optimal sales strategies across the various parcels of land that development of markets, empowerment and transformation make up the portfolio. The emphasis of these activities is on initiatives and the development of sustainable urban areas. 3 736 developable hectares from which sales are expected to come within five years. Land sales derive from underlying One of the key objectives is to develop and grow the presence demand for real estate for a variety of uses. These demand of black property developers, owners and service providers drivers are described in detail in this portfolio document. The throughout the property value chain. The last year has seen table on page 16 gives guidance regarding possible sales notable progress in this regard. outcomes over a five-year period, while that on page 20 details those areas where commercial negotiations have commenced This document updates that published in May 2015 and is or are likely to commence over the next 24 months. The intended to provide an updated overview of Tongaat Hulett’s conversion of the land portfolio is a key enabler of Tongaat portfolio of prime land in KwaZulu-Natal, further progress made Hulett’s drive to achieve value creation for all stakeholders on key demand drivers, current dynamics and the company’s through an all-inclusive approach to growth and development. overarching strategic vision and approach to land conversion activities. Details relating to conversion status, intended Successful land management and conversion of land to its usage, profit and sales dynamics are provided for each of the highest value use near a major city such as Durban or in an area with natural endowments such as the north coast of land assets from which sales are anticipated to come over the KwaZulu-Natal is an important opportunity for business and next five years, with further emphasis on those areas where government to collaborate to create value for society. It is major commercial negotiations have commenced or are likely to enabler of regional competitiveness, investment, economic commence over the next 24 months. development, industry transformation and social delivery. It contains details of the transactions concluded in the six Land conversion is a collaborative exercise between multiple months to 30 September 2015, during which 65 developable role-players and cannot be undertaken sustainably in the hectares were sold, generating profit of R576 million, following long term in isolation from successful rural development and the two previous financial years 2013/14 and 2014/15 during competitive, livable cities. In KwaZulu-Natal, Tongaat Hulett which sales of 259 developable hectares generating profit of has established working relationships with provincial and local R1,08 billion and 108 developable hectares generating profit of authorities in the inextricably linked areas of sugar cane and R829 million were concluded respectively. rural development activities. The planting of 28 687 hectares in the past four years and partnerships with the national The following table provides an overview of recent profit Department of Rural Development and Land Reform, the Jobs generated per developable hectare for a representative range Fund, the KwaZulu-Natal Provincial Government, various local of locations and land uses:

PROFIT GENERATED AREA DESCRIPTION (R million per developable hectare)

RIDGESIDE Prime, high-density, urban mixed use precinct with sea views 34 UMHLANGA RIDGE TOWN CENTRE High-density, urban mixed use precinct 25 to 39 IZINGA / KINDLEWOOD Low-density, high-end residential 3.5 to 6.7 CORNUBIA INDUSTRIAL Light industrial, logistics, warehousing and business park 6 to 9.5 AND BUSINESS ESTATE CORNUBIA RETAIL PARK TOWN General business, offices, retail 7 to 11.8 CENTRE AND N2 BUSINESS PARK

Long-term land, far from shovel ready and without clear land use or MOUNT MORELAND NORTH 2.4 infrastructure in place

SIBAYA NODE 1 Low to medium density, mid-market to high-end residential 8.7 to 17.7

The purpose of the document is to communicate to a wide range of stakeholders the extent to which the portfolio’s scale and location, combined with optimised land use throughout the land conversion cycle, collaborative long-term strategic planning and investment in urban land-use design, infrastructure and market development, create a platform for a catalytic and transformative impact on the value to be created from the land conversion process for an extremely broad range of stakeholders. The portfolio update is intended to be a “living” document, with updates to be produced on at least a biannual basis and will be available for download at www.tongaat.com.

02 Key Concepts

Hectares

Gross hectares refers to the total area of land, defined by a line Land where sales are anticipated to around its boundary. It is a reasonably exact figure, amended commence beyond A 5 year PERIOD only through refined detailed survey. For land in this category, ongoing analysis is carried out on Within the gross hectares of a land asset, some portions are changing market dynamics, infrastructural developments allocated for purposes other than development, including land and government strategies and policy to ensure the early that is environmentally important, very steep or geologically identification of opportunities to accelerate the process unsuitable. Deducting the areas of these ‘undevelopable’ of conversion. Planning processes, in collaboration with portions from the gross hectare area results in an approximate stakeholders, towards getting all these land assets to a area of developable hectares of land that is suitable for shovel ready state are underway. development. Land anticipated to be sold before Early assessments are made of the developable extents of all becoming shovel ready land assets and are refined as planning progresses through various stages. The need to conclude sales that make more land available early for priority social and economic initiatives is increasing. To achieve this, in certain cases it is of value to conclude sales categorisATION OF The land portfolio on land that is not yet shovel ready. The most prominent instance of this currently is for the provision of government Based on consideration of demand under current market subsidised housing. 930 developable hectares have been conditions and interest, the anticipated timelines to shovel earmarked for this purpose, of which 722 developable ready, infrastructural availability and the intended commercial hectares lie within areas from which sales are expected to approach and style of selling, the land portfolio is categorised come within five years. as follows: Profit Land from which sales are expected to come within 5 years Profit is a product of sales revenue, which is an outcome of choices regarding land usage and density, pricing strategy, These are land assets located in areas that enjoy substantial commercial approach and timing; and conversion cost. In policy support from government for conversion, on which this document, an indication of profit or of a range of profit processes toward shovel ready and provision of necessary is provided, based on current market dynamics and what is infrastructure have commenced and for which it is assessed currently being achieved. The profit indication is the cash profit that demand exists or is expected to exist within the period after costs, without any escalation or discounting for time. based on an assessment of the various demand drivers, as described on page 5-10. URBANISATION AND Densification

Within this category, certain land assets have been Considerations of equity, accessibility and efficiency within featured in those areas where commercial negotiations a context of increasing urbanisation, have led to a policy have commenced or are likely to commence over the next environment that encourages densification of South African 24 months. These are highlighted in the tables on pages 16 cities. According to estimates by the United Nations, by and 20 and are individually described in pages 21 to 40 of 2030, 71 percent of the South African population will live the document. in urban areas and by 2050 this figure will have increased to

03 PORTFOLIO OF LAND FOR CONVERSION

80 percent. The area between Umhlanga and Ballito is planned certainty, physical work on both infrastructure and buildings to become an intensive corridor where densification is could commence. Progress towards being shovel ready is a particularly appropriate. Owing to varying market conditions key consideration in the ability to realise optimum value from over time, initial developments frequently struggle to achieve a land asset. the full density potential of their location. Tongaat Hulett has developed various mechanisms to allow for early, lower The general process towards shovel ready and progress against intensity development to kickstart activity and thereafter that process across the portfolio is shown in the land conversion create a pathway to densification over time, with additional and development model on page 12. value creation and realisation without the need to sell additional hectares. Infrastructure Strong and effective policy support for densification has The installation of necessary infrastructure is a prerequisite potential to increase competition to “greenfield” land conversion from redeveloped and densified “brownfields” locations for the optimal use of any land. The role of investment in over time. infrastructure as a catalyst to economic development is now recognised throughout all spheres of government in The densification dynamic is currently evident in both the South Africa. The amplified impact of infrastructure investment commercial and residential precincts of Umhlanga Ridge in larger cities and towns and the need for new approaches Town Centre, precincts two and four of Ridgeside and the to enhance this is being increasingly appreciated. This N2 Business Park in the Cornubia New Town, all of which are notwithstanding, the gap between municipal budgets and being managed to maximize the future potential value creation. urban infrastructure requirements is large and investment in municipal infrastructure must balance the twin objectives Release from Agriculture of social delivery and economic growth. This complex infrastructure environment demands effective partnerships, Tongaat Hulett’s land assets in KwaZulu-Natal are particularly in forward planning and financing, as well as in predominantly situated in areas deemed agricultural in terms improved project preparation to ensure viable innovative of the Subdivision of Agricultural Land Act 70 of 1970 and must models for the implementation of large, integrated therefore be formally released from this status to be developed infrastructure projects. for non-agricultural purposes. Tongaat Hulett’s land conversion processes unlock substantial Release from agriculture can only occur with the support of infrastructural investment. Local scale (neighbourhood) both the provincial and national departments of agriculture public infrastructure is generally installed by Tongaat Hulett and within the parameters of the prevailing provincial and directly and recovered through the sale of land, while medium municipal strategic and spatial plans. scale (metropolitan) and large scale (regional) infrastructure Tongaat Hulett’s intentions for its land assets are well aligned invariably entail collaboration between Tongaat Hulett and with the relevant municipal plans. The portfolio’s location various arms of government. in the primary growth and development corridors of the province places it in a good position to enjoy policy support The principal current obstacle to metropolitan and regional for conversion. scale infrastructure delivery lies in financial and organisational capacity limitations faced by government to implement the Tongaat Hulett’s ongoing role in sustaining and developing necessary investment. Tongaat Hulett is working with both the the agricultural and rural economy of the province of relevant local authorities and other spheres of government to KwaZulu-Natal is a key requirement for sustained progress in assist in addressing this challenge. achieving the necessary approvals for release from agriculture. Infrastructure that is revenue generating for the service provider This financial year has seen significant progress being made, (most often the local authority), such as electrical supply, with an additional 2 622 developable hectares having been water and sewerage, is reasonably easily funded. The bigger granted Act 70 of 1970 approval, bringing the total land with challenge is road infrastructure, which typically comprises some such approval to 3 141 developable hectares, representing 70 percent of total infrastructural cost, is frequently the topic of 39 percent of the total land portfolio. jurisdictional debate between different spheres of government and does not generate pay-for-use revenue directly. Shovel Ready Tongaat Hulett continues to seek sustainable and equitable solutions to this challenge, in collaboration with a broad Ultimately, to develop top structures on land requires a number of planning permissions to be granted by a variety spectrum of public sector role players. Progress continues of government bodies. The key permissions include release to be made, with the current financial year having seen the from agriculture as well as Environmental Impact Assessments commencement of major road infrastructure in the area (EIA), zoning and sub-divisional approvals and Water Use of Umhlanga Ridge Town Centre western expansion into Licence Applications (WULAs). A piece of land is described as the Cornubia New Town where acceptable shared funding shovel ready when the processes of these various approvals arrangements have been achieved, allowing for development are sufficiently advanced that within a short space of time to progress and creating a platform for further collaboration (generally around six months or less) and with a high level of towards better, more sustainable, mechanisms into the future.

04 Demand Drivers

The current period has seen improving momentum in hectare, even when the real estate product developed (e.g. mid- identifying and commencing the analysis of a range of drivers market and affordable housing) is relatively modestly priced. of demand for real estate north and west of Durban and on the Umhlanga Ridge Town Centre and its western expansion into KwaZulu-Natal north coast. The analysis amplifies that in many Cornubia, Ridgeside, Bridge City and Sibaya Node 1 all contain cases, the area is lagging its substantial potential to attract or elements with this typology, while further opportunities are address business and residential demand that would drive real being identified and included in planning processes. This driver estate investment and hence land take-up. is particularly well suited to structured transactions leading to the rollout of precincts by a single agency that is able to In part, the gap arises from the protracted period during optimise both design and management of the final property. which land to accommodate investment demand has been in short supply, owing to challenges in the areas of statutory processes to generate shovel ready land and of inadequate housing Markets infrastructure. In this area, too, substantial momentum has developed in the period, with 3 141 developable hectares The housing market can reasonably be classified into three now having been released from agriculture and 50 percent sub markets, namely mid-market, affordable and government of Tongaat Hulett’s land portfolio now being in the final four subsidised. An additional market for high-end residential is stages of the process towards shovel ready. This is creating the more akin to tourism, leisure and coastal development and is opportunity for Tongaat Hulett and the region to become more described under that heading. Housing demand can usually be proactive in attracting investment and creating new markets. satisfied in one of either dominantly residential suburbs or in Tongaat Hulett is working with a range of government agencies mixed use urban centres. as well as players in the property industry to develop promising market segments. The following is a summary of the range of Mid-Market Housing demand drivers for land in the region. Tongaat Hulett’s residential land sales have historically been skewed towards this market. The market consists of High-Intensity Urban Mixed Use higher-earning households, frequently upgrading from an existing home. In the Umhlanga region Tongaat Hulett has Substantial elements of the portfolio have the potential to on average been able to meet demand, which varies with be positioned into this use over time, enabled by the policy economic conditions and in a middle of the road scenario support for densification, the established examples, particularly is expected to be in the order of 500 units annually, taking on Umhlanga Ridge, and the infrastructural interventions in up an average of 25 to 30 developable hectares. Growth favour of public transport currently being made in eThekwini. and development potential of this market consist primarily The principal attractiveness of this driver lies in its efficient use of continued growth and consolidation of the Umhlanga of each hectare of land and hence the high value created per region and through the opening up of new markets in the

05 PORTFOLIO OF LAND FOR CONVERSION

Ntshongweni area west of Durban and around Ballito, as ready land. well as ensuring better alignment of supply with demand through increased availability of shovel ready land with The delivery ambitions can be achieved with the unique appropriate infrastructural arrangements in place. ability of Tongaat Hulett to bring suitable land to the market at scale, combined with appropriate collaboration with a Affordable Housing number of role players, including government (particularly local government), large developers with the necessary There are estimated to be 285 000 households in northern capability and reputation, employers and financial eThekwini, of which 55 000 (i.e. some 20 percent) are looking institutions. for houses. This market for affordable housing consists primarily of households with a monthly household income Government-Subsidised Housing of between R7 500 and R20 000. New household growth in eThekwini is estimated to be 15 000 annually, of which There is currently a backlog of over 400 000 housing units in approximately fifty percent are in this earnings bracket. eThekwini Municipality to accommodate poor households (roughly defined as those having a monthly household This market typically can be serviced with homes of between income of under R7 500). The backlog of housing for these 50 and 80 square metres as either rental or ownership or households is a national priority and Government has a hybrid of the two and in the price range of R350 000 to developed, and continues to refine, a number of subsidy R800 000. Proximity to public transport routes, places of work mechanisms to address this backlog. and amenities are key considerations, thus the ideal location for such housing is in medium to high density developments The National Minister of Human Settlements has committed (densities of over 120 units per hectare are achievable her department to a five-year action plan to roll out one and and desirable) within or closely adjacent to mixed use or a half million homes for households in this category through commercial precincts. Umhlanga Ridge Town Centre has a number of mega projects. EThekwini Municipality has partially addressed this demand over the past few years and a successful track record of delivery to this market, of the continues to do so, while Bridge City and various precincts order of 15 000 units per year. Since 2008, Tongaat Hulett in Cornubia constitute further short term opportunities. The has worked in collaboration with Government at all levels relocation of the airport and the ongoing and anticipated to initiate Cornubia as a pilot project anticipated to yield future growth of employment-generating activities around some 15 000 units in this market in a good location and in the airport point to an increasing need to provide for this an integrated manner. The extension of the collaboration housing market in the greater Tongaat area. Over time, it is could facilitate the roll-out of some 20 000 additional units anticipated that this market could require more than 1 000 in Cornubia North. developable hectares at a take up rate of up to 60 hectares per annum and achieving profit that can exceed R3 million Based on the developing momentum in Cornubia, boosting per developable hectare, while currently the number of confidence of the replicability of the model, together with people looking for housing exceeds the available shovel the spatial strategies of the respective municipalities,

GOVERNMENT-SUBSIDISED HOUSING REGION LAND ASSET DEVELOPABLE HECTARES

Umhlanga Cornubia North 200 Airport Inyaninga West 187 LAND IN KEY FOCUS AREAS FROM Airport Aberfoyle 150 WHICH SALES ARE EXPECTED TO COME West of Durban Ntshongweni 185 WITHIN FIVE YEARS

SUB TOTAL 722

Airport La Mercy West 52 Coastal North of Ballito Descroizilles 48 LAND WHERE SALES ARE ANTICIPATED TO COMMENCE West of Durban Ntshongweni 108 BEYOND FIVE YEARS SUB TOTAL 208

TOTAL 930

06 Tongaat Hulett has identified a further 930 developable in 2022, is expected to lead to significantly increased tourism hectares, having the potential to yield over 90 000 housing interest as well as accelerated infrastructure investment over units in various locations as tabulated below for sale and the next few years. development in this market. Since Government is the primary implementing agent for this housing market, it is Key tourism-related sub markets with their underlying likely that sales in these areas could take place before the dynamics are as follows: land is shovel ready. High-end City Hotels and Residences

high-end markets The corporate office nodal shift to Umhlanga has resulted in this region being the preferred location for city Hotels The KwaZulu-Natal provincial government has adopted a in Durban. The majority of the Hotels are in the economy tourism master plan that, by 2030 the province will be globally Hotel segment (typically defined as 3 star) with lesser renowned as Africa’s top beach destination with a unique blend representation by full service Hotels. No upscale or luxury of wildlife, scenic and heritage experiences for all visitors. The local or international Hotel brands are present on the vision correctly identifies coastal and beach attractions as Umhlanga Ridge. central to tourism development. The seventy kilometre stretch of coastline from Umhlanga to the Thukela River constitutes Umhlanga Hotels have outperformed the SA Hotel market in a central opportunity to pursue the vision. Tongaat Hulett is occupancy, rate and revenue per available room in 2015. This actively involved in collaboration with the Provincial and Local positive Hotel performance has been due to the sustained authorities to fast track the first phases of this development. growth in demand in individual corporate and leisure travel. This has continued to fuel considerable interest in Umhlanga Durban’s attractiveness to these markets has recently been from both South African and international Hotel brands that boosted through the commencement of a number of new seek to operate a fresh, contemporary, full or select service airline routes linking to King Shaka International Airport. These offering with quality meeting facilities, which will meet the include Qatar Airlines, Turkish Airlines, Ethiopian Airlines, requirements of the corporate and leisure traveller. Proflight Zambia (a low cost airline linking to Lusaka), with British Airways expected to commence a route from Heathrow There is also interest being shown by local and international in December 2016. In addition, the announcement that Durban Hotel brands to operate Apartment Hotels or Residences. will be the first African city to host the Commonwealth Games, This type of Hotel is suited to the long stay corporate and

07 PORTFOLIO OF LAND FOR CONVERSION

leisure traveller. They also offer branded, serviced residential strength in this market. The strategy going forward is investments to high-end buyers. The usage is capable of to increase the returns achievable per hectare through generating returns per hectare consistent with other high higher intensity development and higher premium density, urban mixed uses. It is not likely to take up large pricing on scarce, low density sites. Additional markets to numbers of hectares, but serves more importantly as a increase demand are being sought in the opening of new benchmark of amenity, brand and value for the region and geographical locations west of Durban and north of Ballito. surrounding land assets. During the current financial period a significant milestone Coastal Resorts catering to domestic has been achieved with the commencement of the first sales and foreign Meetings, Conferences, into this market from the Sibaya landholdings at eMdloti. incentives, exhibitions and leisure markets Retirement developments are a specific niched instance of this market. Trends have moved away from conventional This is a lower-intensity land use than the city hotels. old age homes to destinations that offer lifestyle and ease There is currently no truly integrated beach resort in of access to amenities. Currently demand continues to KwaZulu-Natal or South Africa. The KwaZulu-Natal coastline outstrip supply nationally. Despite its natural attributes, the has been acknowledged by global tour and resort operators north coast of KwaZulu-Natal continues to underperform as South Africa’s foremost opportunity to compete with comparative to the KwaZulu-Natal midlands. Increasing other global beach resort destinations, provided critical mass the available opportunities and effective positioning of the can be achieved. Tinley Manor is currently being designed region offers significant demand growth potential. and positioned as a pilot location for this usage to act as a catalyst for more instances of this type of development on the north coast. Returns per hectare are initially expected to Residential Services be modest (in line with low density residential uses) owing to low development densities and the speculative nature This driver consists of social facilities such as schools, medical of the first catalytic developments. The strategic objective and neighbourhood retail facilities developed in response to going forward is to capture further value from surrounding demand from growing residential areas. The objective is to land assets benefitting from proximity to and association ensure that these are catered for and implemented, whether by with resort and higher pricing premiums as destination public or private sector agencies. This usage is typically capable value is established in the area. of producing returns per hectare similar to those generated by the nearby residential land use. Where possible, without losing High-end residential Developments value, the opportunity is sought to arrange for key residential services to be provided prior to or early in the process of This land use is one in which Tongaat Hulett has been active development of the adjacent residential areas so as to act as a for some time. Brands such as Zimbali, Mount Edgecombe catalyst for the development of those areas. and Izinga have given Tongaat Hulett considerable brand

08 The level of residential take-up within Tongaat Hulett’s is collaborating with regional development agencies and developments has, as anticipated, seen an increase in demand the industry body, BPESA, to further this competitiveness and for new public and private health facilities. These include rate of growth. public and private hospitals, step-down facilities, clinics and community healthcare units all of which fall under the Other growth opportunities lie in positioning Durban as an custodianship of the Provincial Department of Health. attractive office location for international companies newly A number of these facilities have been developed over time in entering the South African market, particularly when linked to a somewhat ad hoc manner in Tongaat Hulett’s land portfolio, other (logistics or manufacturing) facilities and in a targeted with Bridge City, uMhlanga and Zimbali current areas of campaign, together with regional development promotion interest. A process is being initiated to develop a much stronger agencies, to attract specifically targeted bigger corporate collaborative relationship with the department to facilitate ffice users considering expanding or relocating elsewhere in joint planning for optimal delivery of such facilities to meet the country. the current and future needs of the growing communities in the region. Many of Tongaat Hulett’s land assets, given their location and context, naturally offer prime office opportunities including Within the Cornubia and uMhlanga sub region, the demand new office nodes at Ntshongweni and within the emerging for new schools, tertiary and executive educational facilities Aerotropolis around the Dube TradePort and King Shaka is intensifying. Educational facilities include public schools, International Airport. private schools (also known as independent schools), early childhood development (ECD) centres and special needs Warehousing, Logistics, Industrial, schools. Primary and secondary schools are the responsibility bUsiness Park, Manufacturing and of the Department of Basic Education (DBE), whereas the big Box Retail Department of Higher Education and Training (DHET) is responsible for tertiary education and vocational training, which The area between Durban and Richards Bay, given that they include FET colleges, adult basic education and training (ABET) constitute the dominant sea ports serving Southern Africa, is centres and higher education institutions such as universities. the most attractive location for new industrial and logistics As with medical facilities, these too have been developed facilities in the region. This sector has historically been an across the land portfolio in an ad hoc, reactive manner. important component of Tongaat Hulett’s land conversion Relationships with the key government departments activities. Current limitations on growth primarily relate to lack are being strengthened to facilitate proactive planning of abundant shovel ready land and supporting metropolitan for the establishment of facilities on strategically and regional scale infrastructure, together with concerns located landholdings. regarding cost of development and operating costs. All these constraints are areas of focus, wherein the solution lies in collaboration with relevant government authorities. Office Market The land preparation and zoning is similar for a wide range of Durban’s office market is currently small and lacks dynamism. uses, however there are a number of separate demand drivers The South African Property Owners Association (SAPOA) office for such industrial / business park land as follows: vacancy survey includes some 17 million square metres of office space around the country. Approximately 1,36 million square Land for large-scale general industrial (as opposed to light metres of this is in Durban (of which Umhlanga comprises industrial and business parks) is in scarce supply and is approximately 0,29 million and Westville / Hillcrest 0,23 million), being created at Compensation. This could accommodate compared to 2,42 million in Cape Town, 3,68 million in Tshwane manufacturing concerns. While this sector is currently under and 9,54 million in Johannesburg (of which 1,52 million is in pressure, there is considerable government emphasis on the Sandton alone). Office development in Durban has historically sector and sub markets with potential around Durban include: consisted primarily of buildings constructed for identified tenants, with little speculative development. • Clothing and textiles, leather and footwear: The sector is undergoing positive structural change within the region Durban clearly has substantial growth potential compared to through the development of fast fashion opportunities other secondary office markets and should be an attractive with national retailers. The sector is also a key driver of office location, given its residential amenity and convenient link employment within the economy. to Gauteng (under one-hour flying time). • Vehicles and automotive components: South Africa’s largest automotive manufacturer is located in the region, with an Recently, Durban has seen substantial activity in the established supplier base. Automotive manufacturing is a development of call centres, for which it should be one of key driver of employment within the region, with significant South Africa’s most competitive locations. Recent growth has economic multipliers through the value chain, in respect of been between 15 and 20 percent annually and Tongaat Hulett logistics and services.

09 PORTFOLIO OF LAND FOR CONVERSION

• Chemicals: The chemicals sector is heavily concentrated in This type of land, particularly where located in proximity the province, and is reliant on the logistics infrastructure to residential and urban areas, also accommodates large that the province offers in respect of access to the port and destination and “big box” retail facilities and showrooms. This road infrastructure. remains an area for further growth, including the introduction • Food processing and beverages: Manufacturing in this of international operators increasing their footprint in Africa sector is one of the largest employers locally, and there is and the provision of retail facilities serving a broader African opportunity for encouraging supply expansion into Africa. market with air and highway accessibility. Similar locations Development of the food processing and beverages sector are potentially attractive for the self-storage sector, which is suggests opportunities to create significant economic a niched real estate use showing interesting prospects for multipliers in the region. expansion in South Africa. • Electronics: Recent major investments in the province may encourage further inflows of foreign direct investment, which in turn would create opportunities for the Unique Clusters of Opportunity development of the supply base through the achievement of scale economies. The size and location of Tongaat Hulett’s land assets allow for experimentation with certain niched uses and for clustering Currently logistics and warehousing operators appear to favour of complementary uses at scale. The most obvious of these the western corridor (on the N3 route between Durban and is the various clusters of uses associated with the so-called Gauteng) to opportunities to the north of Durban. A priority “Aerotropolis” or “airport city”, combined with the good access objective is to accelerate the processes towards shovel ready to road, rail and port activity. Collaboration with Dube TradePort, for land at Ntshongweni that is the best located land on the the municipalities and other regional development agencies is western corridor for this use. To the north of Durban, key continuing to develop this opportunity. activities are to enhance competitiveness through enhanced infrastructure, high quality well-located housing to underpin The clustering of high-tech uses, incubators, innovation and workforce competitiveness and collaboration with state technology parks, opportunities such as a large-scale multi- entities on effectiveness of air, road and rail accessibility. campus tertiary educational facilities serving national, regional Consolidation of the sector is driving demand for larger parcels and international markets and research and development of land. Tongaat Hulett is well-placed to accommodate this facilities are being considered and have potential to attract new requirement, particularly at Compensation. end users and complement other, more traditional land uses.

Demand DriverS ICON OVERVIEW

High-intensity urban mixed use

Housing markets

High-end markets

Residential services

OFFICE MARKET

Warehousing, logistics, industrial, BUSINESS PARK, manufacturing and big box retail

Unique clusters of opportunity

10 Possible 5-year sales outcomes

Consideration of varying levels of success in moving land towards shovel ready, with the necessary metropolitan and regional scale infrastructure, in conjunction with growing and taking advantage of the potential demand drivers described above, including sales of larger portions of land where the buyer will take a number of years to fully develop that land, leads to the following possible sales outcomes.

RANGE OF DEVELOPABLE RANGE OF PROFIT PER HECTARES DEVELOPABLE HECTARE DEMAND DRIVER

from to from to

High-intensity urban mixed use 80 135 22,0 39,0

Mid-market housing 125 175 3,5 7,5

Housing Affordable housing 50 150 2,5 3,8 markets

Government-subsidised housing 200 722 2,0 2,4

High-end city hotels 6 16 12,0 25,0 and residences Coastal Resorts catering High-end to domestic, charter and 10 50 3,5 5,0 markets incentive markets High-end residential 20 50 6,0 9,0 developments

Residential services 15 66 3,8 6,0

Office market 8 50 6,0 15,4

Warehousing, logistics, industrial, business park, 120 350 5,0 9,5 manufacturing and big box retail

Unique clusters of opportunity 4 100 4,0 7,5

11 PORTFOLIO OF LAND FOR CONVERSION

LAND CONVERSION AND DEVELOPMENT MODEL

Tongaat Hulett’s approach to land conversion and development is informed by the company’s broad strategic objective of value creation for all stakeholders through an all-inclusive approach to growth and development. Converting agricultural land for urban development is a complex process requiring the support of a diverse range of stakeholders and includes the continued investment into rural livelihoods through agricultural and rural development.

STEPS TO COMMENCEMENT OF CONSTRUCTION OF BUILDINGS AND INFRASTRUCTURE

The following schematic provides an overview of the broad processes, including generic timing, which have to take place before land is ready for development. This is illustrative only and the process varies depending on the context of each unique land asset.

KEY PRELIMINARY DRAFT SPATIAL FORMAL DEMAND STAKEHOLDERS ASSESSMENT DEVELOPMENT ENGAGEMENT DRIVERS PROPOSAL WITH NATIONAL Land asset data MUNICIPAL Asses market demand GOVERNMENT collection and Greater understanding opportunities site analysis of specific context ROLE-PLAYERS enabling refinement of Consultation with development concept Ongoing consideration PROVINCIAL key stakeholders of long-term High-intensity GOVERNMENT through internal Iterative drafting development urban mixed use processes to align process to respond to objectives of the region with provincial and specific community, MUNICIPAL municipal plans and infrastructural and Alignment of draft Housing markets GOVERNMENT objectives market dynamics spatial development proposal with municipal Spatial Ongoing assessment High-end markets OTHER PUBLIC of development Development SECTOR PARTNERS potential and Framework (SDF) probability of value realisation based on Ongoing collaborative Residential services LOCAL key value drivers planning with COMMUNITIES municipal officials Early collaborative Office market planning with SHAREHOLDERS municipal officials Warehousing / logistics/ industrial/ PROPERTY manufacturing INDUSTRY ROLE-PLAYERS/ INVESTORS/ Unique clusters PURCHASERS/ of opportunity DEVELOPERS

RELEASE FROM AGRICULTURE Formal application to the National Department of Agriculture, Forestry and Fisheries to release the land from agriculture in terms of the Subdivision of Agricultural Land Act (70 of 1970) Process runs in parallel to EIA and can take 18 months or more INFRASTRUCTURE Planning infrastructure requirements, negotiating funding arrangements and collaboration with government on implementation runs in parallel to planning processes OPTIMUM LAND MANAGEMENT Land is strategically planned, intensively managed and optimally used, AND USE including for agriculture, throughout the land conversion process

ESTIMATED TIMEFRAME 3 MONTHS 3 MONTHS 6 MONTHS

12 OUTCOMES DEMAND ENVIRONMENTAL FORMAL SHOVEL FINAL APPROVAL DRIVERS IMPACT SUBMISSION OF READY AND ENHANCING RURAL LIVELIHOODS THROUGH ASSESSMENT PLANNING AND COMMENCEMENT Asses market demand Alignment with INVESTMENT INTO (EIA) DEVELOPMENT AGRICULTURAL opportunities relevant planning OF CONSTRUCTION (PDA) frameworks and OF BUILDINGS AND DEVELOPMENT Formal statutory process legislation achieved required for any greenfield APPLICATION INFRASTRUCTURE JOB CREATION High-intensity development administered Engagements based Release from urban mixed use by the Provincial Agriculture achieved Approval in terms GREEN SPACE Department of Economic on responses from stakeholders through the of PDA Development, Tourism and EIA and PDA RESIDENTIAL AND HOUSING Environmental Affairs EIA process, including Housing markets surrounding communities sufficiently far The land can be advanced with COMMERCIAL AND Extensive consultative and public sector role- formally transferred INDUSTRIAL DEVELOPMENT players support from key to a purchaser to process which can take stakeholders High-end markets about two years or longer commence BULK INFRASTRUCTURE depending on the Receipt of formal development municipal comments on Clear programme circumstances for sales process SUSTAINABLE development proposal VALUE CREATION Residential services details, including land use, and development development controls, activation based on rezoning and subdivision key value drivers Office market Finalisation of detailed zoning and layout plans Warehousing / and submission in terms logistics/ industrial/ of PDA manufacturing

Unique clusters TOTAL of opportunity 8 026 ha OF TOTAL LAND ASSETS CURRENTLY 50% IN THESE STAGES OF THE PROCESS 3 141 developable hectares have Act 70 of 1970 approval which represents 39% of the Land Portfolio

886 developable hectares subject to gazetted land claims, all of which were owned by Tongaat Hulett prior to 1913

24 MONTHS 8 MONTHS 1 MONTH 3 MONTHS 4 YEARS

13 PORTFOLIO OF LAND FOR CONVERSION

As reported at 31 March 2015 - Land from which sales were expected to come within 5 years

Developable AREA hectares

Urban Growth and Consolidation - Umhlanga Region 1 014 Ridgeside Remaining Precinct 1 and 2 42 Ridgeside Precinct 4 20 Umhlanga Ridge Town Centre 8 Izinga / Kindlewood 111 Umhlanga Ridge Westerly Expansion - New Town Phase 1 (Retail) 0 Umhlanga Ridge Extension - Cornubia New Town Phase 2 202 Umhlanga Ridge Town Centre Western Expansion 49 N2 Business Park 2 Umhlanga Hills 43 Marshall Dam Residential 12 Marshall Dam Town Centre 39 Consolidating Urban 43 Integrated Residential 14 Cornubia Industrial 7 Cornubia North 624 3 050 DURBAN Integrated Residential 200 developable TO Medium Density Residential 100 hectares from BALLITO Consolidating Urban 85 a total of N2 Business Park 69 4 491 Industrial 170 Coastal / Lifestyle / Leisure / High-end Residential 276 Zimbali Lakes 48 Sibaya Node 1 49 Sibaya Node 5 76 Sibaya Node 4 103 Airport Region business and residential 1 725 uShukela Drive - Airport Linked Industrial, Retail and Logistics 49 Amanzimnyama - Office / Business / Industrial and Logistics Park 345 Compensation (East) - Industrial and Manufacturing 73 Compensation Western Expansion - Industrial and Manufacturing 152 iNyaninga East - Industrial / Logistics / Manufacturing 550 iNyaninga West, Lindokuhle, Aberfoyle, Dudley Pringle - 556 Residential and Urban Expansion of oThongathi (Tongaat) REMAINING SITES ON NEARLY COMPLETED DEVELOPMENTS 35

Urban Expansion West of Durban 481 481 developable WEST OF Ntshongweni - Residential Infill / Consolidation 57 DURBAN hectares from Ntshongweni - Retail and Urban Core 78 a total of 1 100 Ntshongweni - Logistics and Business Park 161 Ntshongweni - Integrated Residential 185 270 COASTAL Coastal North of Ballito 270 NORTH OF developable hectares BALLITO from a total of Tinley Manor South Banks – Resort 270 2 500 3 801 developable hectares GRAND TOTAL 3 801 from a total of 8 091

14 From 1 April 2015 to 30 September 2015 - Land sale and portfolio activity

H1 (to 30 September 2015) 1 AREA Reassessment Sold Profit per dev ha (hectares) (hectares) (R million) Urban Growth and Consolidation - Umhlanga Region 1 Ridgeside Remaining Precinct 1 and 2 -42 Ridgeside Remaining Precinct 1 11 Ridgeside Remaining Precinct 2 31 Ridgeside Precinct 4 1 Umhlanga Ridge Town Centre -8 Umhlanga Ridge Town Centre - Commercial 1 Umhlanga Ridge Town Centre - Residential 7 3 39.0 1 Izinga / Kindlewood -111 Izinga 83 4 5.7 Kindlewood 28 16 4.0 Umhlanga Ridge Extension - Cornubia New Town Phase 2 Umhlanga Ridge Town Centre Western Expansion 24 7.5 N2 Business Park Umhlanga Hills Marshall Dam Residential Marshall Dam Town Centre Consolidating Urban Integrated Residential DURBAN TO Cornubia Industrial 1 6.4 BALLITO Cornubia North Integrated Residential Medium Density Residential Consolidating Urban N2 Business Park Industrial Coastal / Lifestyle / Leisure / High-end Residential Zimbali Lakes Sibaya Node 1 16 11.3 Sibaya Node 5 Sibaya Node 4 Airport Region business and residential uShukela Drive - Airport Linked Industrial, Retail and Logistics Amanzimnyama - Office / Business / Industrial and Logistics Park Compensation (East) - Industrial and Manufacturing Compensation Western Expansion - Industrial and Manufacturing iNyaninga East - Industrial / Logistics / Manufacturing iNyaninga West, Lindokuhle, Aberfoyle, Dudley Pringle - Residential and Urban Expansion of oThongathi (Tongaat) 2 REMAINING SITES ON NEARLY COMPLETED DEVELOPMENTS 1 8.0 Urban Expansion West of Durban WEST OF Ntshongweni - Residential Infill / Consolidation DURBAN Ntshongweni - Retail and Urban Core Ntshongweni - Logistics and Business Park Ntshongweni - Integrated Residential COASTAL Coastal North of Ballito NORTH OF BALLITO Tinley Manor South Banks – Resort GRAND TOTAL 0 65 8.9

1 Finer-grained detail given for Ridgeside, Umhlanga Ridge Town Centre and Izinga / Kindlewood 2 Sale of land in Bridge City

15 PORTFOLIO OF LAND FOR CONVERSION

At 30 September 2015 - Land from which sales are expected to come within 5 years Dev Page ref AREA hectares Urban Growth and Consolidation - Umhlanga Region 966

Ridgeside Remaining Precinct 1 21 11 Ridgeside Precinct 2 22 31 Ridgeside Precinct 4 42 20 Umhlanga Ridge Town Centre - Commercial 23 1 Umhlanga Ridge Town Centre - Residential 24 4 Izinga 25 & 42 79 Kindlewood 26 12 Umhlanga Ridge Extension - Cornubia New Town Phase 2 178 Umhlanga Ridge Town Centre Western Expansion 27 25 N2 Business Park 28 2 Umhlanga Hills 29 43 Marshall Dam Residential 30 12 Marshall Dam Town Centre 43 39 Consolidating Urban 43 43 Integrated Residential 31 14 Cornubia Industrial 32 6 2 985 Cornubia North 624 developable Integrated Residential 33 200 hectares from a total of DURBAN Medium Density Residential 43 100 4 426 TO Consolidating Urban 43 85 BALLITO N2 Business Park 43 69 Industrial 43 170 Coastal / Lifestyle / Leisure / High-end Residential 260

Zimbali Lakes 34 48 Sibaya Node 1 35 33 Sibaya Node 5 36 76 Sibaya Node 4 44 103 Airport Region business and residential 1 725

uShukela Drive - Airport Linked Industrial, Retail and Logistics 37 49 Amanzimnyama - Office / Business / Industrial and Logistics Park 44 345 Compensation (East) - Industrial and Manufacturing 38 73 Compensation Western Expansion - Industrial and Manufacturing 45 152 iNyaninga East - Industrial / Logistics / Manufacturing 45 550 iNyaninga West, Lindokuhle, Aberfoyle, Dudley Pringle - 46 556 Residential and Urban Expansion of oThongathi (Tongaat)

39, 40 REMAINING SITES ON NEARLY COMPLETED DEVELOPMENTS & 46 34

Urban Expansion West of Durban 481 481 WEST OF Ntshongweni - Residential Infill / Consolidation 47 57 developable DURBAN hectares from Ntshongweni - Retail and Urban Core 47 78 a total of Ntshongweni - Logistics and Business Park 48 161 1 100 Ntshongweni - Integrated Residential 48 185 270 COASTAL Coastal North of Ballito 270 NORTH OF developable hectares BALLITO from a total of Tinley Manor South Banks – Resort 49 270 2 500 3 736 developable hectares GRAND TOTAL 3 736 from a total of 8 026 Areas where commercial negotiations have commenced or are likely to commence over the next 24 months

16 At 30 September 2015 - Land where sales are anticipated to commence beyond 5 years

AREA Dev hectares URBAN GROWTH AND CONSOLIDATION - UMHLANGA REGION 0

COASTAL / LIFESTYLE / LEISURE / HIGH END RESIDENTIAL 547 Sibaya Coastal growth and consolidation 336 DURBAN 1 441 developable TO Ballito / Zimbali Expansion into eThekwini 211 hectares from a BALLITO AIRPORT REGION BUSINESS AND RESIDENTIAL 894 total of 4 426 Durban to Airport Expansion and Consolidation 279 Consolidation of region to east of Airport 615 REMAINING SITES ON NEARLY COMPLETED DEVELOPMENTS 0 URBAN EXPANSION WEST OF DURBAN 619 Consolidation of Urban Core 82 619 developable WEST OF DURBAN Lifestyle Residential 429 hectares from a total of 1 100 Integrated residential expansion and recreational precinct 108

COASTAL NORTH OF BALLITO 2 230 Northern Expansion of Tinley Manor 388 2 230 developable COASTAL NORTH hectares from a OF BALLITO Coastal Consolidation of Far North 1 794 total of 2 500 Northern residential expansion of Compensation area 48

4 290 developable GRAND TOTAL 4 290 hectares from a total of 8 026

17 PORTFOLIO OF LAND FOR CONVERSION

18 LAND CONVERSION PORTFOLIO Areas where commercial negotiations have commenced or are likely to commence over the next 24 months

19 PORTFOLIO OF LAND FOR CONVERSION

At 30 September 2015 - Areas where commercial negotiations have commenced or are likely to commence over the next 24 months

Page Dev Demand AREA ref hectares driver

Urban Growth and Consolidation - Umhlanga Region 366

Ridgeside Remaining Precinct 1 21 11 Ridgeside Precinct 2 22 31 Umhlanga Ridge Town Centre - Commercial 23 1 Umhlanga Ridge Town Centre - Residential 24 4 Izinga 25 5 Kindlewood 26 12 Umhlanga Ridge Extension - Cornubia New Town Phase 2 96 Umhlanga Ridge Town Centre Western Expansion 27 25 N2 Business Park 28 2 Umhlanga Hills 29 43 Marshall Dam Residential 30 12 Integrated Residential 31 14 Cornubia Industrial 32 6 DURBAN Cornubia North 200 TO Integrated Residential 33 200 BALLITO Coastal / Lifestyle / Leisure / High-end Residential 157

Zimbali Lakes 34 48 Sibaya Node 1 35 33 Sibaya Node 5 36 76 Airport Region business and residential 122

uShukela Drive - Airport Linked Industrial, Retail and Logistics 37 49 Compensation (East) - Industrial and Manufacturing 38 73 REMAINING SITES ON NEARLY COMPLETED DEVELOPMENTS 13

Bridge City 39 9 Other nearly completed developments 40 4

658 GRAND TOTAL developable hectares

Demand DriverS This table should be read together with the possible 5-year sales outcomes ICON OVERVIEW on page 11. When commercial negotiations commence in any High-intensity OFFICE MARKET particular area, they could be urban mixed use for either some or all of the Warehousing, logistics, industrial, Housing markets BUSINESS PARK, manufacturing hectares listed. and big box retail

High-end markets Unique clusters of opportunity

Residential services

20 RIDGESIDE REMAINING PRECINCT 1 Durban to Ballito area Umhlanga region | Ridgeside 11 DEVELOPABLE HECTARES

Median profit PREMIUM VALUE Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• Prime location in highly sought-after region with Good progress has been made, after a 2-year comprehensive scarcity of available sites process, in understanding how to unlock optimal value from • Two-year comprehensive process has led to this prime land and the adjacent precinct 2 of Umhlanga significant interest for multiple uses Ridgeside. A single sale of both precincts together, with the current commercial and residential mix, is not likely to LAND USE be the optimum route and a multiple sales approach will now be embarked upon, benefitting from the significant interest created to date.

• High-intensity urban mixed use • High-end residential • High-end city hotels and residences • Premium-grade corporate offices and high-end retail

MAP PROJECT STATUS

Release from Agriculture Shovel An application is being considered to ready modify the mix of uses to optimise value Infrastructure No constraints anticipated considerations

21 PORTFOLIO OF LAND FOR CONVERSION

RIDGESIDE PRECINCT 2

Durban to Ballito area Umhlanga region | Ridgeside 31 DEVELOPABLE HECTARES

Median profit PREMIUM VALUE Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• Prime location in highly sought-after region with Good progress has been made, after a 2-year comprehensive scarcity of available sites process, in understanding how to unlock optimal value • High-end residential in prime address from this prime land and the remaining portion of the with all amenities adjacent precinct 1 of Umhlanga Ridgeside. A single sale of both precincts together, with the current commercial and LAND USE residential mix, is not likely to be the optimum route and a multiple sales approach will now be embarked upon, benefitting from the significant interest created to date

• High-end residential • Hotels, hospitality and other tourism • Limited office and retail uses

MAP PROJECT STATUS

Release from Agriculture Shovel An application is being considered to ready modify the mix of uses to optimise value Infrastructure No constraints anticipated considerations

22 UMHLANGA RIDGE TOWN CENTRE - COMMERCIAL

Durban to Ballito area Umhlanga region | Umhlanga Ridge Town Centre <1 DEVELOPABLE HECTARE

Median profit commercially sensitive

Median profit per hectare >R30 MILLION

Opportunity

• Prime location. Last sites in highly sought-after region These sites form part of the Umhlanga Ridge Town Centre. The • Location directly on GO!Durban route and future sites are being intensively marketed to developers and end bus station users. A number of enquiries are being pursued.

LAND USE Umhlanga Ridge Town Centre has achieved a critical mass where further densification over time is likely and desirable. Tongaat Hulett has completed a first valuation of this potential and is commencing processes to optimise the value created.

• High-intensity urban mixed use • Prime mid-market to high-end residential • Prime site for a city hotel, with residences • Premium-grade corporate offices

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Installation of the GO!Durban bus station will further enhance attractiveness of the sites

23 PORTFOLIO OF LAND FOR CONVERSION

UMHLANGA RIDGE TOWN CENTRE - Residential

Durban to Ballito area | Umhlanga region Umhlanga Ridge Town Centre 4 DEVELOPABLE HECTARES

Median profit >R100 MILLION

Median profit per hectare >R25 MILLION

Opportunity

• Affordable and mid-market medium to high-density The limited development opportunities in Umhlanga residential in developing town centre is driving demand for remaining sites. Sites are being • Limited available opportunities and increasing scarcity actively taken to market to allow developers to assemble development schemes to capitalise on the surrounding LAND USE town centre development, the public transportation systems and increasing scarcity of affordable and mid-market housing.

• Residential precinct in high-intensity mixed use area • Prime mid-market residential

MAP PROJECT STATUS

Release from Agriculture Shovel ready Majority of developable bulk sold – additional residential units being applied for

Infrastructure No constraints anticipated considerations Installation of the GO!Durban public transportation system will further enhance the value and attractiveness of this development

24 IZINGA - CURRENT PHASES Durban to Ballito area Umhlanga region | Izinga 5 DEVELOPABLE HECTAREs

Median profit R27.5 MILLION

Median profit per hectare R5.5 MILLION

Opportunity

• Increasingly scarce high-quality residential living All single residential sites in Izinga have been sold out. close to all amenities The remaining sites in current phases of Izinga represent the last sectional title development opportunities in a high-value established area. The sites are being marketed to achieve LAND USE premium values.

• High-end residential • Medium density, well located with substantial amenities

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Major infrastructue and amenities completed

KINDLEWOOD Durban to Ballito area Umhlanga region | Kindlewood

12 DEVELOPABLE HECTAREs

Median profit >R48 MILLION

Median profit per hectare >R4 MILLION

Opportunity

• Increasingly scarce high-quality residential living This development is approaching completion, creating scarcity close to all amenities and allowing for premium pricing. A recent sale for retirement purposes have positioned as attractive for this use, allowing further densification. LAND USE

• High-end residential • Low to medium density, well located with substantial amenities

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Additional residential units being applied for to allow densification and further retirement uses

26 UMHLANGA RIDGE TOWN CENTRE WESTERN EXPANSION - CORNUBIA NEW TOWN

Durban to Ballito area Umhlanga region | Cornubia New Town 25 DEVELOPABLE HECTARES

Median profit commercially sensitive

Median profit per hectare PROFITABILITY TO BE IN RANGE EXPECTED FROM HIGH-INTENSITY URBAN MIXED USE

Opportunity • Strategically located at N2/Gateway Interchange Marketing will commence soon to position the opportunity • Primary access off Cornubia Boulevard with end users, developers and investors. A flexible approach is • Commencement of construction of Cornubia retail park, together with the recent sale of some 78 000m2 mixed being adopted that will cater for sales of individual sites, various commercial bulk will act as a catalyst to developement sub-precincts or the entire land asset. LAND USE

• High-intensity urban mixed use • Prime mid-market housing • Premium and A-grade offices and Business Process Outsourc- ing (BPO) facilities • Opportunity for city hotels • High-intensity transit oriented development based on road and public transport accessability MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure Construction of new interchange on M41 has considerations commenced, together with bridge and partial interchange off N2 to link with Umhlanga Ridge Town Centre as part the GO!Durban route.

27 PORTFOLIO OF LAND FOR CONVERSION

N2 BUSINESS PARK

Durban to Ballito area Umhlanga region | Cornubia New Town 2 DEVELOPABLE HECTARES

Median profit commercially sensitive

Median profit per hectare commercially sensitive

Median profit ON ADDITIONAL BULK Potentially R160 million for no further hectares sold

Opportunity

• Most of this precinct has been sold to a developer who The commercial approach to this land asset is twofold. The is actively developing concepts and sourcing end users remaining site in the precinct is unique in this location and is • Collaboration with the buyer offers opportunities for positioned for revenue maximisation - several enquiries have further value creation been received. The zoning permissions and infrastructure allow for increased intensity of use on the area already LAND USE sold. Tongaat Hulett is collaborating with the buyer to accelerate the take-up of the additional potential.

• Warehousing, logistics, industrial, business park, manufacturing and big box retail • Wide range of office uses

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Construction of new interchange on M41 has commenced, together with bridge and partial interchange off N2 to link with Umhlanga Ridge New Town Centre

28 UMHLANGA HILLS

Durban to Ballito area Umhlanga region | Cornubia New Town 43 DEVELOPABLE HECTARES

Median profit R280 MILLION

Median profit per hectare R6,5 MILLION

Opportunity

• High-quality, affordable, well-located residential, Options are being evaluated to sell as five separate precincts, with high amenity one development or a series of developments. • Accessibility improving with new roads and interchanges currently being constructed Several potential developers have been shown the opportunity.

LAND USE Negotiations are progressing to secure a high-quality educational facility as an early driver of value in the precinct.

• Affordable to mid-market, medium to high-density residential, with associated residential services • Transit-oriented development possibilities

MAP PROJECT STATUS

Release from Agriculture Shovel EIA approved ready Detailed planning well advanced

Infrastructure Construction of new interchange on M41 has considerations commenced, together with bridge and partial interchange off N2 to link with Umhlanga Ridge New Town Centre as part of the GO!Durban public transport route

MARSHALL DAM RESIDENTIAL

Durban to Ballito area Umhlanga region | Cornubia New Town 12 DEVELOPABLE HECTAREs

Median profit commercially sensitive

Median profit per hectare commercially sensitive

Opportunity

• High-quality, affordable, well-located residential, This site was included in Durban’s successful bid as the location with high amenity for an athletes’ village. The opportunity has also attracted considerable interest for well located, high amenity affordable to mid-market residential. Commercial processes in this regard are LAND USE being held back until final resolution of Commonwealth Games requirements, expected by January 2016.

• Affordable to mid-market, medium to high-density residential • Unique opportunity based on amenity value associated with the unique location adjacent to the Marshall Dam and Commonwealth Games potential

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Value of the land will be enhanced by improved road linkage to the GO!Durban route and major road network

Durban to Ballito area Umhlanga region | Cornubia New Town 14 DEVELOPABLE HECTARES

Median profit Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• High-quality, affordable, well-located residential, Engagement has commenced with large portfolio investors with high amenity and developers for potential housing development to • Adjacent to high-end residential suburb (Izinga) and accomodate demand arising from growing employment N2 Business estate expected to see development in the area, including rental and home ownership commence in 12 to 18 months options. A flexible approach is being adopted to cater for sales of various sub-precincts or the entire LAND USE land asset.

• Affordable to mid-market, medium to high-density residential, with associated residential services

MAP PROJECT STATUS

Release from Agriculture Shovel EIA approved ready Detailed planning well advanced

Infrastructure No constraints anticipated considerations

CORNUBIA INDUSTRIAL

Durban to Ballito area Umhlanga region | Cornubia Industrial 6 DEVELOPABLE HECTAREs Median profit Commercially sensitive Median profit per hectare Commercially sensitive AT THE HIGHER END OF THE RANGE INDICATED FOR THIS LAND USE

Opportunity

• Last available site in established, growing business estate Remaining hectares consist primarily of a single, large site. The site is being marketed based on the increasing attractiveness of the location as the remainder of the estate continues to be built. LAND USE

• Warehousing, logistics, industrial, business park and manufacturing

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations

Durban to Ballito area Umhlanga region | Cornubia North 200 DEVELOPABLE HECTAREs

Median profit R440 MILLION

Median profit per hectare R2,2 MILLION

Opportunity

• Substantial backlog of high-quality, The success of the Cornubia development and the government-subsidised, affordable, well-located commencement of development at Sibaya signal the residential, with associated residential services accelerated demand for land between Umhlanga and the airport. Cornubia North is a logical expansion of Cornubia LAND USE and could accommodate in excess of 20 000 well located, government subsidised and affordable homes. An early sale to a government-related entity is being sought, that will enable value to be created for all stakeholders.

• Government-subsidised, affordable, medium to high-density residential, with associated residential services

MAP PROJECT STATUS

Release from Pending approval Agriculture Shovel Framework plan under review with municipality ready EIA underway

Infrastructure No constraints anticipated considerations Installation of major road, interchange and GO!Durban public transport facilities will enhance the future value of the site

ZIMBALI LAKES

Durban to Ballito area Coastal region | Zimbali 48 DEVELOPABLE HECTARES

Median profit COMMERCIALLY SENSITIVE

Median profit per hectare COMMERCIALLY SENSITIVE

Opportunity

• High-end lifestyle market incorporating quality A joint venture development between Tongaat Hulett and IFA residential, resort and retirement in prime Hotels and Resorts. The commercial strategy seeks to unlock location value from the complementary makeup of the joint venture partners. Sales approaches are currently being reviewed in line LAND USE with enhancements to concept and mix.

• Coastal property, high-end and mid-market residential, hotel, resort and retirement

MAP PROJECT STATUS

Release from Agriculture Shovel Amendments to concept ready and mix are in progress Infrastructure No constraints anticipated considerations

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Land WHERE SALES ARE ANTICIPATED TO COMMENCE BEYOND 5 YEARS Sales achieved in full year reporting period

34 SIBAYA - NODE 1

Durban to Ballito area Coastal region | Sibaya 33 DEVELOPABLE HECTAREs

Median profit Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• Prime coastal location in sought-after region within close Responding to a high level of local market interest, initial proximity to Umhlanga and the King Shaka packages within Node 1 were put to the market with 16 International Airport hectares being taken up for high end residential. These sales are catalytic to this landholding, with construction activity to LAND USE commence early in 2016.

Further sales of complementary uses are being pursued following consolidation around these early catalyst sales.

• High-end residential The international marketing campaign for Sibaya continues to • High-end city hotels and residences be executed, with emphasis on Node 5. • Resort • High-intensity urban mixed use

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations

SIBAYA - NODE 5

Durban to Ballito area Coastal region | Sibaya 76 DEVELOPABLE HECTAREs

Median profit Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• Prime coastal location in sought after region within close Sales for high-end residential have been concluded in proximity to King Shaka International Airport, eMdloti Node 1. These trigger a new high-end market near eMdloti and uMhlanga. and the commencement of infrastructure and building work. Node 5 is now well positioned to build on this momentum. An international marketing campaign is commencing, LAND USE targeting sales to investors and developers who have previously expressed interest. The approach allows for sale of the entire node or combinations of a number of unique sub-precincts.

• High-end residential, high-end city hotels and residences, resort • Unique cluster of opportunity

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations

Durban to Ballito area Airport region | Ushukela Drive 49 DEVELOPABLE HECTAREs

Median profit Commercially sensitive

Median profit per hectare Commercially sensitive

Opportunity

• Prime location in sought-after airport region with Marketing has commenced and this opportunity is being scarcity of appropriately zoned sites introduced to investors, large-scale developers and selected • Improving air connectivity and highway exposure end-users. A flexible approach will be adopted that will cater for sales of individual sites, various sub-precincts or the entire land asset. The sales strategy will leverage off the unique LAND USE ocation of the site relative to the King Shaka International Airport and national and provincial road exposure.

• Warehousing, logistics, industrial, business park, manufacturing • Destination warehouse retailing • Unique cluster of opportunity related to airport linkage

MAP PROJECT STATUS

Release from Agriculture Shovel EIA in advanced stage in collaboration ready with local municipality and Dube TradePort

Infrastructure No constraints anticipated considerations

COMPENSATION EAST - Industrial and manufacturing

Durban to Ballito area Airport region | Compensation 73 DEVELOPABLE HECTARES

Median profit R400 MILLION

Median profit per hectare R5.5 MILLION

Opportunity

• Increasingly scarce industrial land, well serviced by This land is unique in the portfolio in its suitability for large-scale higher order roads and rail manufacturing with potential to be rail-served. The commercial • Large platforms of general industrial land that can strategy is centred on positioning the opportunity optimally for accomodate manufacturing industries and large-scale logistics a range of manufacturing demand drivers. • Potential for factories to be rail-served The adjacent property, Compensation West, offers LAND USE similar opportunity and land use potential. Commercial processes commenced on this eastern portion could shift or expand into Compensation West, particularly if very large facilities are required. The combined landholdings offer a unique scale of manufacturing opportunity in the • Warehousing, logistics, industrial, business park, Durban region. manufacturing and warehouse retail

MAP PROJECT STATUS

Release from Agriculture Shovel EIA in advanced stage ready Infrastructure No constraints anticipated considerations

38 BRIDGE CITY

Durban to Ballito area Remaining sites on nearly completed developments 9 DEVELOPABLE HECTARES

Median profit R72 MILLION

Median profit per hectare R8.0 MILLION

Opportunity

• Unique location, located directly on three A public private partnership (PPP) between the eThekwini proposed GO!Durban routes and rail station Municipality and Tongaat Hulett.

Bridge City is experiencing increased interest from a broad LAND USE range of developers. A sale comprising of 32 000m2 of bulk has been concluded for the development of a private hospital.

The sales strategy leverages off the growing momentum created in the development, and the accessibility offered by the • High-intensity urban mixed use incorporating networked public transportation systems. retail, offices, and housing • Centrally located and accessible business park PROJECT STATUS

MAP Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations Value of the land will be enhanced by improved road linkage to the GO!Durban route and major road network

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Sales achieved in full year reporting period

39 PORTFOLIO OF LAND FOR CONVERSION

OTHER NEARLY COMPLETED DEVELOPMENTS

Durban to Ballito area Remaining Sites 4 DEVELOPABLE HECTARES

Median profit R16 MILLION

Median profit per hectare R4 MILLION

Opportunity

• Niche opportunity for small developers within This is a diverse land asset with an array of value drivers. existing development or acquisition opportunity Bespoke commercial and marketing strategies are being for adjacent landholders employed to ensure optimal value creation.

LAND USE

• Warehousing, logistics, business park • Wide range of office uses

MAP PROJECT STATUS

Release from Agriculture Shovel ready Infrastructure No constraints anticipated considerations

41 PORTFOLIO OF LAND FOR CONVERSION

RIDGESIDE PRECINCT 4 IZINGA Durban to Ballito area - Future phases Umhlanga region | Ridgeside Durban to Ballito area Umhlanga region | Izinga

MEdian profit MEdian profit >R600 MILLION R350 MILLION 20 (RANGE R500 - R800 million) 75 (RANGE R315 - R600 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE HECTARES per hectare >R30 MILLION HECTARES R4,7 MILLION (RANGE R25 - R40 million) (RANGE R4,2 - R8 million)

The sales and commercial strategy is to take the develop- The sales strategy, including timing and phasing of release ment proposal to market at the appropriate time to create to market, will be selected based on the achievement of optimal value from this unique and last remaining oppor- enhanced development rights and assessment of market tunity. Timing will be based on, inter alia, the progress and demand and supply. The inclusion of mixed uses and development of precincts 1 and 2. securing of an educational facility will be considered for their impact on value. Opportunity • High-end, medium to high-density residential in Opportunity prime location with increasing scarcity • Builds on established brand and location • Other uses can be considered to optimise value • Further mid-market to high-end residential, with PROJECT STATUS higher-density, additional facilities and mix of uses • Increased interest from tertiary educational institutions is being experienced Release from Agriculture PROJECT STATUS Shovel Land use under review ready Release from Shovel ready projected for 2017 Agriculture Shovel Infrastructure No constraints anticipated ready considerations Revision and amendment of approved rights underway

Infrastructure No constraints anticipated considerations

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Land FROM WHICH SALES ARE EXPECTED TO COME WITHIN 5 YEARS Sales achieved in full year reporting period Land WHERE SALES ARE ANTICIPATED TO COMMENCE BEYOND 5 YEARS Sales before shovel ready 42 MARSHALL DAM TOWN CENTRE CORNUBIA NORTH AND CONSOLIDATING URBAN Durban to Ballito area (Umhlanga RidgeTown Centre Western Expansion) Umhlanga region | Cornubia North Durban to Ballito area Umhlanga region | Cornubia New Town

MEdian profit MEdian profit R965 MILLION R1 160 MILLION 82 (RANGE R740 - R1 310 million) 424 (RANGE R1 100 - R2 970 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES R11,8 MILLION HECTARES R5,2 MILLION (RANGE R9,0 - R16,0 million) (RANGE R4,5 - R7,0 million)

The land asset will be marketed to take advantage of Cornubia North provides opportunity for further the adjacency to Marshall Dam and the location on the government-subsidised housing (see page 33). The GO!Durban route. adjacent uses are further affordable and mid-market housing, business park and industrial uses, together Opportunity with further urban growth and consolidation along key transport routes. • Strategically located on the GO!Durban route • Envisaged nexus of a high-intensity urban Opportunity mixed-use node comprising offices, retail, hotels and residential services • Build on the momentum of strategies established in Cornubia to accelerate development, while optimising density and usage to increase value PROJECT STATUS • A first phase could be accelerated around the existing N2 interchange at Sibaya Release from Agriculture PROJECT STATUS Shovel EIA approved, detailed planning to ready commence Release from Pending approval Agriculture

Infrastructure No constraints anticipated Shovel Framework plan under review considerations ready with municipality Value of the land will be enhanced by improved road linkage to the GO! Durban EIA underway route and major road network Infrastructure High-level planning well advanced considerations Engagements with service providers will progress in line with planning process

WITHIN 5 YEARS

SIBAYA AMANZIMNYAMA - Node 4 Office / Business / Industrial and logistics park Durban to Ballito area Durban to Ballito area Coastal region | Sibaya Airport region | Amanzinyama

MEdian profit MEdian profit R502 MILLION R1 064 MILLION 103 (RANGE R464 - R927 million) 345 (RANGE R1 035 - R2 760 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES R4,9 MILLION HECTARES R4,8 MILLION (RANGE R4,5 - R9,0 million) (RANGE R4,5 - R8,0 million)

The timing, phasing and release of this development will The sales and commercial strategy will be crafted to be managed to ensure that the opportunity for value ensure that the phasing and timing of release of this extraction is optimised. Consideration will be given to development is aligned to the growing demand for this the progress on development of Nodes 1 and 5 and the product in the Aerotropolis. take-up and demand of similar residential opportunities in Izinga. It is likely that a flexible approach will be adopted Opportunity for the commercial strategy to ensure that a broader pool of investors/developers are catered for. • Demand for warehousing, logistics, industrial, business park, manufacturing, big box retail and Opportunity offices in the emerging Aerotropolis

• Medium to high-density residential catering for PROJECT STATUS mid-market to high end, together with opportunities for a new office precinct located midway between Umhlanga and the airport Release from Application being prepared for Agriculture submission in conjunction with • Residential amenities to serve the existing community, provincial and municipal authorities together with new development in Nodes 1 and 5 Shovel Framework planning at advanced stage PROJECT STATUS ready Infrastructure High-level planning underway Release from considerations Agriculture Engagements with service providers to Shovel EIA underway progress in line with planning process ready Infrastructure High-level planning well advanced considerations Engagements with service providers will progress in line with planning process

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Land FROM WHICH SALES ARE EXPECTED TO COME WITHIN 5 YEARS Sales achieved in full year reporting period Land WHERE SALES ARE ANTICIPATED TO COMMENCE BEYOND 5 YEARS Sales before shovel ready 44 COMPENSATION INYANINGA EAST WESTERN EXPANSION - Industrial / Logistics / Manufacturing Industrial and manufacturing Durban to Ballito area Durban to Ballito area Airport region | Inyaninga

MEdian profit MEdian profit R836 MILLION R2 800 MILLION 152 (RANGE R760 - R988 million) 550 (RANGE R2 500 - R4 125 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES R5,5 MILLION HECTARES R5 MILLION (RANGE R5 - R6.5 million) (RANGE R4,5 - R7,5 million)

The commercial strategy, timing and phasing of release The commercial approach will be to market the of land assets will be assessed in line with market development opportunity with prospective end-users in demands, rights application processes and infrastructure identified markets towards realising significant value due installation. The timing, phasing and release of neigh- to the proximity to the airport, accessibility and scarcity of bouring developments by other parties in the emerging large, flat, platformed land. Commercial processes on the Aerotropolis will also be assessed to ensure that value is East could very well be extended to the West as expansion created for a wider stakeholder base. requirements need to be accommodated. Opportunity Opportunity • Multiplicity of land use, comprising warehousing, • Increasingly scarce industrial land between logistics, industrial, business park, manufacturing, 20-40 hectares on a single platform, well serviced by high-intensity urban mixed use, offices and a range higher-order roads and close to the King Shaka Airport of residential densities and incomes • Rail served industrial sites are a possibility • PROJECT STATUS PROJECT STATUS • Release from Release from Agriculture Agriculture Shovel EIA in advanced stage in collaboration with Shovel EIA at advanced stage ready local municipality and Dube TradePort ready Infrastructure High-level planning well advanced Infrastructure No constraints anticipated considerations considerations Engagements with service providers will progress in line with planning process

WITHIN 5 YEARS

INYANINGA WEST, LINDOKUHLE, REMAINING SITES ABERFOYLE & DUDLEY PRINGLE on nearly completed developments Durban to Ballito area | Airport region Durban to Ballito area

MEdian profit MEdian profit R1 300 MILLION R56 MILLION 556 (RANGE R1 112 - R2 224 million) 21 (RANGE R42 - R109 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES R2,3 MILLION HECTARES R2.7 MILLION (RANGE R2,0 - R4 million) (RANGE R2.0 - R5.2 million)

The commercial strategy will be designed around These are diverse land assets with an array of value drivers. engagement with government and other housing Bespoke commercial and marketing strategies are being sector partners to jointly deliver accommodation for the employed to ensure optimal value creation. subsidised, affordable and mid-market segments. Opportunity Opportunity • Niche opportunity for small developers within • Collaboration with relevant stakeholders to deliver existing developments or acquisition opportunity for government-subsidised, affordable and mid-market adjacent landholders housing, to enable expansion of oTongathi and Aerotropolis housing needs PROJECT STATUS

PROJECT STATUS Release from Application being prepared or released Agriculture Release from Mostly released, portions being processed Shovel Likely to be sold in existing form Agriculture ready Shovel EIA underway Infrastructure No constraints anticipated ready considerations Infrastructure High-level planning well advanced considerations Engagements with service providers will progress in line with planning process

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Land FROM WHICH SALES ARE EXPECTED TO COME WITHIN 5 YEARS Sales achieved in full year reporting period Land WHERE SALES ARE ANTICIPATED TO COMMENCE BEYOND 5 YEARS Sales before shovel ready 46 NTSHONGWENI NTSHONGWENI Residential infill and consolidation Retail and urban core West of Durban | Ntshongweni West of Durban | Ntshongweni

MEdian profit R220 MILLION MEdian profit 57 (RANGE R200 - R400 million) 78 Commercially sensitive Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES R3,9 MILLION HECTARES Commercially sensitive (RANGE R3,5 - R7,0 million)

The commercial strategy will be developed around the The commercial strategy will be crafted taking into account uniqueness of the site, the pent-up demand for low to the market demand, timing of development approvals medium-density residential estate and the timing ofthe and infrastructural installations. To date, there has been development approvals and infrastructure installation. strong market interest in this region. It is envisaged that the shopping centre will play a catalytic role in this Opportunity development’s trajectory.

• Low to medium-density residential for high-end Opportunity markets, as infill development within Hillcrest • Retirement as a particular niche market • High-intensity urban mixed use incorporating regional shopping centre as new sub-regional economic hub PROJECT STATUS along N3 corridor

Release from PROJECT STATUS Agriculture

Shovel Framework planning aligned with local Release from Agriculture ready municipal spatial plans Shovel Framework planning aligned with local Infrastructure High-level planning well advanced ready municipal spatial plans considerations Engagements with service providers will EIA at advanced stage progress in line with planning process Infrastructure High-level planning well advanced considerations Engagements with service providers will progress in line with planning process

WITHIN 5 YEARS

NTSHONGWENI NTSHONGWENI Logistics and Business Park Integrated Residential West of Durban | Ntshongweni West of Durban | Ntshongweni

MEdian profit MEdian profit R463 MILLION 161 Commercially sensitive 185 (RANGE R370 - R740 million) Median profit Median profit DEVELOPABLE per hectare DEVELOPABLE per hectare HECTARES Commercially sensitive HECTARES R2,5 MILLION (RANGE R2 - R4 million)

The success of other developments on the N3 corridor There is evident demand for housing in this area, based west of Durban is leading to increased interest in a on continuous growth in adjacent areas and increasing business park at Ntshongweni, which is the most enquiries. attractive site on this corridor. The central strategy is to accelerate the process to shovel ready to enable the Opportunity demand to be satisfied. • The opportunity is ideally located for a catalytic, Opportunity large-scale integrated residential development. Processes are commencing to position the opportunity • Warehousing, logistics, industrial, business park, with relevant government agencies manufacturing and big box retail within the new • economic hub along the N3 corridor PROJECT STATUS

PROJECT STATUS Release from Agriculture Shovel Framework planning aligned with local Release from ready municipal spatial plans Agriculture Infrastructure High level planning well advanced Shovel Framework planning aligned with local considerations ready municipal spatial plans Engagements with service providers will Infrastructure High-level planning well advanced progress in line with planning process considerations Engagements with service providers will progress in line with planning process

AREAS WHERE COMMERCIAL NEGOTIATIONS HAVE COMMENCED OR ARE LIKELY TO COMMENCE OVER THE NEXT 24 MONTHS FEATURED LAND ASSET Land FROM WHICH SALES ARE EXPECTED TO COME WITHIN 5 YEARS Sales achieved in full year reporting period Land WHERE SALES ARE ANTICIPATED TO COMMENCE BEYOND 5 YEARS Sales before shovel ready 48 TINLEY MANOR SOUTH BANKS - Resort Coastal North of Ballito | Tinley Manor

MEdian profit R1 560 MILLION 270 (RANGE R1 270 - R2 430 million) Median profit DEVELOPABLE per hectare HECTARES R5,8 MILLION (RANGE R4,7 - R9,0 million)

This development consists of three distinct areas each with a unique focus. The resort phase (comprising international hotels and tourism opportunities) sits on prime beachfront land, the residential phase will comprise varying density lifestyle residential accommodation and the mixed-use component will provide office, retail and residential services.

Opportunity

• Unique coastal property for high-end residential, resort and tourism

PROJECT STATUS

Release from Agriculture Shovel EIA at advanced stage ready Infrastructure High-level planning underway considerations Engagements with service providers to progress in line with planning process

WITHIN 5 YEARS

LAND WHERE SALES ARE ANTICIPATED TO COMMENCE Beyond 5 years

The commercial strategies in an ever changing environment are being positioned to allow for the development opportunities that are likely to occur beyond five years. Emerging opportunities to drive demand and value are being taken as they emerge, together with the development approval processes and infrastructural requirements to optimise eventual returns. Opportunities for value realisation at an earlier stage are continuously assessed. The following table summarises the broad factors relevant to each of these land assets:

GROWTH NODES DEVELOPABLE OPPORTUNITY HECTARES

These land assets will see the growth and consolidation of the SIBAYA COASTAL emerging Sibaya economic hub within an attractive natural GROWTH AND environment and outlook and will incorporate high-end CONSOLIDATION 336 markets, hotels and resort opportunities.

Incorporating high-end markets, high-intensity urban BALLITO/ZIMBALI mixed use, office and warehouse, logistics, industrial and EXPANSION INTO manufacturing uses, this development will provide the infill ETHEKWINI 211 gap between the Ballito/Zimbali’s southern expansion and the Umhlanga and Airport area’s northern expansion.

This land asset represents an infill between the northern UMHLANGA TO expansion of Cornubia and the southern expansion of AIRPORT King Shaka International Airport and Dube TradePort with EXPANSION AND envisaged uses incorporating offices, high-intensity urban CONSOLIDATION 279 mixed use, warehouse, and logistics, industrial and manufacturing.

The emerging Aerotropolis will require this land asset to CONSOLIDATION incorporate high-end markets, office and warehouse, logistics, OF REGION TO EAST industrial and manufacturing, government-subsidised, OF AIRPORT 615 affordable and mid-market housing and associated residential services.

This land asset will incorporate high-end markets, high NORTHERN intensity urban mixed use, office, affordable and mid-market EXPANSION OF housing and represents the logical growth and expansion of TINLEY MANOR 388 Tinley Manor.

50 LAND CONVERSION PORTFOLIO Land where sales are anticipated to commence beyond 5 years

GROWTH NODES DEVELOPABLE OPPORTUNITY HECTARES

COASTAL These land assets will incorporate high-end markets and CONSOLIDATION tourist-related activities due to unique beachfront and/or OF FAR NORTH 1 794 wildlife locations.

NORTHERN RESIDENTIAL This land asset offers the potential opportunity for government- EXPANSION OF subsidised, affordable and mid-market housing and associated COMPENSATION 48 residential services. AREA

URBAN EXPANSION WEST OF DURBAN 619

Natural growth and consolidation of the Ntshongweni retail Consolidation and urban core is centred around the N3 and M13 regional of urban core 82 road networks, with opportunities for high-intensity urban mixed use and offices.

Lifestyle This is a natural extension of the Summerveld equestrian and residential high-end residential environment with a mix of densities and 429 typologies.

Integrated residential This offers longer-term integrated residential opportunities expansion and 108 within a broader recreational and environmental precinct in recreational close proximity to existing peri-urban settlements. ON D precinct B E Y 5 Y E AR S

51 PORTFOLIO OVERVIEW MAP